VZ · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

VERIZON COMMUNICATIONS INC · 2026-07-31 · Importance 47 · Surprise 40

The second-quarter provision for income taxes decreased $163 million, or 11.0%, to $1.325 billion, while the six-month provision decreased $15 million to $2.963 billion. Verizon’s effective income tax rate increased to 25.1% in the second quarter from 22.5% in the prior-year quarter and to 24.6% year to date from 22.8%. The higher tax rate primarily resulted from the nondeductible loss on the classification of net assets held for sale associated with the Verizon Contributed Business. Unrecognized tax benefits totaled $2.5 billion at June 30, 2026, compared with $2.6 billion at December 31, 2025.

Key facts

• Net cash provided by operating activities increased $1.7 billion during the six months ended June 30, 2026 primarily attributable to timing of cash tax payments as a result of the One Big Beautiful Bill legislation and working capital benefits related to lower upgrade volumes, partially offset by a decrease in earnings. source
• Provision for income taxes for the three months ended June 30, 2026: $1,325 million, a decrease of $163 million (11.0%) compared to $1,488 million for the three months ended June 30, 2025. source
• Effective income tax rate for the three months ended June 30, 2026: 25.1% compared to 22.5% for the three months ended June 30, 2025; the increase was primarily related to the nondeductible loss on the classification of net assets held for sale associated with the Verizon Contributed Business. source